Lead

The popularity of Xiaomi YU7 is not unexpected, but securing over 200,000 orders in just three minutes has stunned many. Despite Xiaomi's unique definition of a confirmed order, it is undeniable that Xiaomi YU7 has generated significant buzz. This aggressive move has further stirred up the already tumultuous automotive industry.

Produced by | Heyan Yueche Studio

Written by | Zhang Dachuan

Edited by | He Zi

Total words: 2358

Reading time: 4 minutes

Xiaomi Automobile stands out as the automaker that best grasps marketing in the automotive sector, consistently generating immense traffic with each new vehicle launch.

On June 26, Xiaomi YU7, which had been highly anticipated, officially unveiled its price: a starting price of 253,500 yuan. This price, lower than industry expectations, led to Xiaomi YU7 announcing that it had surpassed 200,000 orders within three minutes of the launch and reached 289,000 confirmed orders within an hour. In comparison, Tesla Model Y, Xiaomi YU7's primary competitor, sold 127,800 units in the first five months of this year. Essentially, Xiaomi YU7 sold Tesla Model Y's annual sales volume in just one hour.

△ Xiaomi YU7 has set a new record in Chinese automotive history

Is Xiaomi YU7 a formidable competitor?

Tesla Model Y, Ledao L60, and Zeekr 7X, as YU7's main competitors, feel threatened. However, for now, Xiaomi YU7 has not yet emerged as a significant rival to these models.

Firstly, Xiaomi Automobile faces production capacity constraints. Currently, Xiaomi Automobile's primary production facility is the Beijing Phase I factory with an annual capacity of 150,000 units, mainly used for Xiaomi SU7. Xiaomi YU7 will primarily be manufactured at the Phase II factory, also planned for a capacity of 150,000 units, which will commence production in July this year. Considering the initial production ramp-up, customers placing orders later may have to wait for about a year. For ordinary customers, they not only face a lengthy wait but also need to stay updated on changes in domestic electric vehicle subsidy policies.

△ Insufficient production capacity poses a challenge for Xiaomi Automobile

Another aspect to consider is that some Xiaomi YU7 orders may come from scalpers aiming to resell for profit. For scalpers, there is considerable uncertainty regarding whether their orders can be successfully sold once Xiaomi Automobile's production capacity is fully operational next year. If the orders listed on some platforms cannot be smoothly transferred, it implies that some of these confirmed order customers may eventually regret their decisions.

In terms of product strength, Xiaomi YU7 is a well-balanced player: featuring an eye-catching design, a standard 800V high-voltage platform across all trim levels, a maximum CLTC range of 835 kilometers, a top-tier model with a 0-100 km/h acceleration time of just 3.23 seconds, an NVIDIA Thor chip with 700 TOPS of computing power, and a Sky Screen panoramic display system, among other features. This combination makes Xiaomi YU7's pricing seem quite reasonable.

However, for major competitors such as Tesla, NIO, XPeng, Zeekr, and Hongmeng Zhixing, Xiaomi YU7 does not offer a generational advantage in terms of product strength. For mainstream domestic automakers, creating such a configuration is feasible. Additionally, each brand and model has its unique selling points in the market. Tesla's FSD, Ledao's reliance on NIO's battery swapping system and customer service standards, and Zeekr, empowered by the Geely system, continue to deepen their expertise in their respective areas.

△ Xiaomi YU7's product highlights are not unattainable for competitors

Where lies Xiaomi YU7's strength?

Xiaomi YU7's success is indeed a lesson worth learning for every domestic automaker.

If the success of Xiaomi SU7 was somewhat accidental, Xiaomi YU7 can be described as surpassing its predecessor. Especially in terms of marketing, Xiaomi Automobile has reached a level unmatched by both traditional and new-force automakers, garnering substantial attention in public opinion and converting a considerable portion into sales. In fact, compared to other new-force automakers, Xiaomi Automobile's significant bright spot lies in the vast potential customer base brought by its huge fan following. Even if only a small percentage of Xiaomi's tens of millions of fans convert, they can become Xiaomi Automobile's most steadfast support group during its initial mass production phase. For most domestic automakers, one of the significant challenges they face is low brand loyalty. Perhaps in the future, major automakers will need to consider enhancing customer loyalty.

△ Xiaomi's ecosystem has amassed a large group of 'Mi Fans' for Xiaomi Automobile

Another aspect worth learning from by domestic manufacturers is that Xiaomi Automobile adopts a non-aggressive technological approach. Xiaomi YU7 is a well-balanced model in terms of product strength but does not showcase groundbreaking advancements in core technologies such as intelligent cabins, autonomous driving, and the trinity of battery, motor, and electronic control systems. However, in terms of appearance and many practical details, Xiaomi YU7 boasts numerous ingenious ideas. It has to be said that Lei Jun, as a product manager, has outperformed most domestic traditional automotive professionals.

Can Xiaomi YU7's popularity extend overseas?

For competitors, Xiaomi YU7 is undoubtedly a significant concern. Based on existing models, devising effective countermeasures to stabilize their sales base is the top priority for the marketing teams of various brands. However, for the Chinese automotive industry, Xiaomi YU7's popularity is undoubtedly a positive development.

Xiaomi YU7 will drive more domestic consumption and is a crucial measure for "building a new development paradigm of mutual promotion between domestic and international dual circulations." Car purchases are the second largest consumption for most domestic households after housing, and subsequent activities such as self-drive travel and used car replacements can also stimulate the economy. Therefore, in a scenario where domestic consumption willingness is generally weak, having a car that attracts a rush of buyers is certainly a positive development.

However, Xiaomi Automobile is undoubtedly under intense scrutiny from all sides currently, and any minor issues may escalate into a public relations crisis. Lei Jun also faced a significant public relations crisis due to SU7 before. In fact, not only Xiaomi but also Tesla has several times become the focus of media attention due to so-called "braking failures."

△ After the launch of YU7, Xiaomi Automobile will once again be scrutinized by all parties

In the future, Xiaomi Automobile, like other domestic automakers, should also venture into overseas markets. For Xiaomi Automobile, the overseas market does not have as many 'Mi Fans' as in China, making it challenging to persuade global users to buy Xiaomi Automobiles. Especially with an appearance similar to that of the Porsche Taycan and Ferrari Purosangue, whether it will trigger widespread commentary in overseas media will also be a difficult problem for Xiaomi Automobile. Utilizing the valuable experience and system capabilities accumulated in the domestic market to prepare for overseas expansion is a significant task for Xiaomi Automobile in the next phase.

△ Without as many 'Mi Fans' in the overseas market as in China, it will be challenging for Xiaomi Automobile to persuade global users to buy its cars

Commentary

Undoubtedly, YU7 will have a profound impact on the domestic automotive market in 2025. As Xiaomi Automobile's competitors, they may need to start paying genuine attention to Xiaomi Automobile's strategies. Understanding consumer psychology may be far more critical than making groundbreaking advancements in product strength. In contrast, after achieving such remarkable success, Xiaomi Automobile will undoubtedly be scrutinized by all parties. Especially as its delivery volume rapidly increases, various issues will also surface. The offensive and defensive battles between Xiaomi and other brands will intensify. Next, a great show in the domestic automotive market may unfold.

(This article is originally created by "Heyan Yueche" and may not be reproduced without authorization)